ISLAMABAD (June 23 2009): The government on Monday announced a major relief to exporters by declaring income tax collected on export proceeds as final discharge of liability, reduced withholding tax from four to three percent for industrial importers, abolished \'Carbon Surcharge\' on CNG, replaced 16 percent sales tax on import of newsprint with five percent customs duty and abolished 20 paisa Federal Excise Duty (FED) on SMS with increase in FED from 19 to 19.5 percent on services provided by cellular companies. Winding up the debate on the federal budget in the House, Minister of State for Finance Hina Rabbani Khar said the government has decided to revise the ad-hoc relief allowance for civil employees in BPS 1-16 from 15 percent to 20 percent. This revision would also be applicable to personnel of the Armed Forces in BPS 1-16 and equivalent who were earlier allowed only a 15 percent increase. Moreover, the ad-hoc relief allowance announced for old pensioners who retired ten years ago or earlier is being revised and they would now enjoy the benefit of 20 percent increase in net pensions. Announcing other relief measures for business community through amended Finance Bill (2009-2010), she said that requirement of NTN or CNIC for sales to unregistered purchasers is being withdrawn; similarly, presenting of NTN for opening of bank account is being made voluntary or as per requirement of the bank concerned. Through another amendment in Finance Bill, the difference in the charge of additional tax on delayed payments and compensation on refund is being reduced to three percent from present about 12 percent. The concept of third party audit by established and certified Chartered Accountant companies is being introduced. However, it is being ensured in the concept that it does not result in unnecessary harassment of business concerns. The procedures relating to resolution of tax disputes is being further streamlined and simplified and all such proposals that were considered to be unnecessarily harsh and punitive like conducting raids on business premises without approval of FBR, are being withdrawn. Sharing details of the tax-related amendments in the Finance Bill, she said that it was being proposed to lower the withholding tax from four percent to three percent for industrial imports to provide relief to manufacturers. This involves a relief of over RS five billion to the manufacturing sector and would reduce their cost of production. Income tax collected on export proceeds is being made final discharge of liability of the exporters to facilitate export oriented activities and to enable exporters to compete more effectively in the international market. On the demand of youth and children, additional Federal Excise Duty at the rate of paisa 20 per SMS is being withdrawn. The revenue loss would be compensated by increasing the additional FED on cellular services form 19 percent to 19.5 percent. She also announced that since the government expects to wind up the National Accountability Bureau within the next three months, the budget for NAB is proposed to be reduced to Rs 183 million to cover 3 month\'s expenditure. The excess amount would be surrendered. The government also announced reconstitution of Seventh National Finance Commission (NFC). The first meeting of the NFC would be convened in July 2009. The NFC deliberations would be completed at the earliest and hopefully within three months of the convening of the first meeting, she added. About the budget sessions, she said that the consultative process with the Standing Committees on Finance & Revenues of the National Assembly and the Senate would, in future, begin two months prior to budget presentation. In the next financial year and beyond, the government shall ensure that the budget is presented to the Parliament on or before May 30 to allow larger Parliamentary scrutiny. The government has decided to present the financial and fiscal performance of the government to the Senate Standing Committee on Finance and Revenue and the Standing Committee of the National Assembly on Finance and Revenue for a quarterly review, he informed. The government would ensure that supplementary appropriations are kept to a minimum to cater for unforeseen emergent expenditures. Approval of the National Assembly would be obtained on a quarterly basis in respect of such supplementary appropriations, she added. The Minister said that allocations for health and education would be increased to four percent of the gross domestic production (GDP) next year and some of the recommendations of the pay and pension commission would also be implemented within the next financial year. She said the government was committed to raise allocations for social sector including education and health to six percent of the GDP in three years. The global economic recession and worsening law and order situation have affected our economy but the government due to its tireless efforts overcome these pressures and gain sustainability in the economy and put it on the right track, she added. The Minister said according to IMF report released in April this year 1.3 percent decline to the GDP of the world economy witnessed and its impact was reflected in our economy. The Minister also spoke about the nine-point reform agenda of the government to bring about economic stability in the country by ensuing security to the vulnerable, increase in productivity in agriculture and industrial sectors. Keeping in view the backwardness of Balochistan, She said that the government has increased its development allocations from Rs 42 to Rs 50 billion this year. She said a special grant of Rs nine billion has been allocated by the Prime Minister to the province for their developmental activities. The Minister said the allocations for Fata have been increased from Rs 8.7 billion to Rs 12.9 billion and for Northern Areas from Rs 5.6 to Rs 8.4 billion which would help improve their infrastructure and social sector. She said the Prime Minister has announced Rs 6 billion for the NWFP to meet its security needs. She said the difficult decisions taken by the government helped reduced the budget deficit to three percent of the GDP. She said the foreign exchange reserves in October 2008 were only for month exports have risen to four months exports and stood at eleven point four billion dollars in May this year. She said the government has risen the PSDP eighty-five percent to the previous year\'s development programme, which is a record and would help improve the physical infrastructure and basic amenities of life. She said the government has been able to return back Rs 200 billion to the State Bank. She said the inflation rate in October 2008 stood at 25 percent has now been reduced to 14.4 percent in May this year while food inflation stood at over 32 percent in October 2008 has also been reduced significantly. She said the government has initiated Benazir Income Support Programme to check the poverty and allocations of this programme has been doubled and stood at Rs 70 billion. Referring to Minorities, the Minister said five percent quota for minorities in federal services has been fixed